The British Retail Consortium (BRC) has criticised upcoming legislation affecting convenience retailers, including the Deposit Return Scheme (DRS) and packaging laws, saying both measures will inflate costs for shops.
In its 2025 Manifesto for Retail, published this week, BRC called on the government to adjust the timeframe for both DRS and Extended Producer Responsibility (EPR) schemes, as well as for the ringfencing of funds raised by EPR. The manifesto also says that other upcoming hikes to National Insurance and Minimum Wage costs for small shops mean retailers’ potential EPR-related payments should be deferred.
Under EPR legislation, retailers may face higher costs due to the need to comply with the new rules, including potential fees to cover the recycling and disposal of packaging materials.
Industry bodies slam Wales’ decision to create own DRS
“The new packaging levy, Extended Producer Responsibility (EPR), will cost £2bn a year, whilst the Deposit Return Scheme (DRS) for drinks containers is currently expected to be introduced in October 2027, costing at least £1.8bn a year as well as significant costs for set-up,” the manifesto says.
“The costs for EPR will coincide with other major costs for retailers announced in the Autumn Budget. These measures are therefore likely to be inflationary,” it continues.
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BRC also said EPR proposals “currently fail to deliver the investment in new recycling infrastructure”, adding “fees will not be ringfenced for investment in critical new infrastructure.”
DRS will be introduced across England, Scotland and Northern Ireland in 2027. The Welsh government announced in November that it would create its own DRS, meaning a UK-wide DRS will not be delivered.
“Timelines for the introduction of DRS, which were already incredibly tight, are now no longer feasible considering the Welsh government’s decision to pull out of the four-nation scheme,” BRC said.
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